Post authored by Aaron Dorsey, Senior Director of Strategic Sales Solutions
“The best predictor of future behavior is past behavior.”
This maxim has long been embraced by business leaders, but to ring true in today’s fast-changing world, behaviors must be recent–ideally, within the last three years.
Here’s why: There’s been a major shift in attendee behaviors, especially in their decision-making process around hotel reservations. Not too long ago, attendees were more dependent on guidance from you on where to book and when. However, as digital channels exploded, their access to information about hotels within reasonable proximity to the event activity hub soared.
As we strive to improve room block performance for our clients, we’re analyzing housing data across a wide range of parameters, but the most important and predictive benchmark of all is their Reservation-to-Registration Ratio (R2R). All in all this is just data analysis and sifting through a data lake, whether manual or automated, software solutions exist for many industries needing data analysis.
A Closer Look at R2R
For years, we’ve been monitoring this key performance indicator, as it’s a powerful gauge of event financial health. More importantly, as we watch how R2R fluctuates from one event cycle to the next, we can more accurately predict future changes and intervene sooner, to keep housing revenue moving in the right direction.
Total Reservations in the Contracted Room Block
÷ Total Event Registrations
= Res-to-Reg Ratio (R2R)
We recently completed a detailed housing study, aggregating data from more than 3,000 events over an eight-year span (2009 – 2017). Working with a team of database and business analysts, we segmented and applied several parameters, analyzing data by service mix, by destination, by event size, and by industry segment, all to gain a better understanding of critical changes.
Knowing your overall R2R score is helpful, but as you drill down further, the insights are even more intriguing. Here are a few noteworthy R2R findings from our study:
R2R by Attendance Size
For conferences and trade shows with less than 2,000 attendees, more than 45% of registrants also booked housing in the contracted block. As attendance increases, R2R gradually declines.
R2R by Location
We examined R2R for events in the Top 10 Cities. NOTE: Top 10 denotes cities/metro areas represented more often in our total data pool of 3,000+ events.
R2R by Room Rate
For room rate analysis, we chose to zero in on events occurring in the first half of 2017, to more accurately reflect current economic conditions.
While it’s helpful to compare your room block performance with these industry benchmarks, keep in mind, the most valuable benchmarks are your own. Are you studying how room block performance changes from year to year and across multiple parameters?
R2R is one of three powerful insights revealed in our new eBook, 3 Essentials for Housing & Room Block Mastery. We would encourage you to give this eBook a read, as it outlines recommendations to improve event room block performance and mitigate attrition risk.